We determine the extent of cyclical comovement in employment among the regions of Mexico by analyzing the covariance of … the disturbances in regional cycles during the period July 1997 - October 2009. Employment refers to the number of workers … structural multivariate model of the employment time series. We find, for most regions, that employment comovement is high and …

employment across Mexican states. As a measure of formal employment we use the number of workers with permanent contracts … states are highly heterogeneous with respect to the degree of employment comovement and the association between the state and … national employment. Only in 11 of the 32 states we find that fluctuations in state employment are highly synchronized between …